1. Why Trade in Services Statistics are Important in CEFTA
Aleksandra Rakovic
Technical Expert
Workshop on International Trade in Services Statistics
EUROSTAT
Luxembourg, 2-3 June 2015

2. Structure of Presentation
Implementation of CEFTA Agreement and SEE2020 Strategy
Negotiations on Liberalisation of Trade in Services within the CEFTA framework
Coordination of Investment Policies and Investment Promotion- [RCC-CEFTA]
Recognition of Professional Qualifications [RCC-CEFTA]

3. Development of CEFTA Structures
Joint Committee
2007
Deputy Ministers
2015
Committee on Trade Facilitation
Secretariat
Joint RCC –CEFTA
WG on Investment Policy and Promotion
Subcommittee on Agriculture and SPS
Subcommittee on
Trade in Services
WG on Electronic Exchange of Information
Subcommittee on Customs and RO
Negotiating Group on Trade in Services
Working Group on Risk Management
WG on Trade in Services Statistics
Subcommittee on NTBs and TBT
Working Group
on TBT
Joint RCC CEFTA WG on Recognition of Professional Qualifications

4. Development of priorities
CEFTA
CEFTA & SEE 2020
All commitments and deadlines met
Full liberalisation of trade in goods
Diagonal cumulation
Opening of PP Market
TBT notification
State Aid notification
IPR review
Non-discrimination in Investment
Transparency tools: Market Access Database, SPS Database, CEFTA Trade Portal
Implementation of Agreement
focused on
Liberalisation of trade in services
Trade Facilitation
Transparency
Synergies within SEE 2020
Investment
Market Access
Supply chains
Mobility
Human capital development etc.

5. SEE2020 Strategy –Flowchart

6. Overall Strategic Goals
Five out of twelve SEE 2020 headline targets are trade and investment related.
Increase SEE average GDP per capita relative to the EU average: from 36.4% to 44% in 2020
Boost total SEE trade in goods and services: from EUR 94.4 billion to EUR billion in 2020
Reduce SEE trade deficit: from -15.7% (the average in ) to % of GDP in 2020 (1 million new jobs to be created in the SEE)
Overall Strategic Goals
Increase SEE intra-regional trade in goods by more than 140%
Increase overall annual FDI inflows to the region by at least 160%
Integrated Growth
Increase GDP per person employed by 32%
Add 300,000 highly qualified people to the workforce
Smart Growth
Increase net enterprise creation (new businesses per year) from 30,107 to 33,760
Increase exports of goods & services per capita from the region from EUR 1,780 to EUR 4,250
Sustainable Growth
Increase in the overall employment rate, as a percentage of the 15+ population, from 39.5% to 44.4%
Inclusive Growth
Improve government’s effectiveness as measured by the World Bank Governance Index from 2.33 to 2.9 by 2020
Governance for Growth

7. Key Areas of Intervention
Integrated Growth
Free Trade Area
Goods
Services
Investment
Skilled labour
Competitive Economic Environment
Competition Policy
IPR
Public Procurement
Integration into
Global Economy
Market Access
Participation in Global Supply Networks
Capacity
Transparency
Data availability and quality

8. Why statistical data are important for?
Measuring the impact of globalization (GVC and supply chains analysis)
Investment and trade negotiations
For policy and decision makers on choosing appropriate negotiating priorities and strategy
As a guide to negotiate specific commitments (benchmarks and baselines)
Evaluate market access opportunities
Assessment of impact of liberalization
Background information for disputes
Research purposes
Private business for impact analysis and new market opportunities

9. Source: SEE2020Baseline Report

11. Trade Policy and Facilitation Indicators
Total trade in goods and services (billions of USD)
Trade balance (% of GDP)
Intra-regional trade in goods (billions of USD)
SEE trade deficit (% of GDP)
Imports/exports of agricultural products
Imports/exports of services
Services Trade Restrictiveness index

13. Investment Policy and Promotion Indicators
Overall annual FDI inflows as a percentage of GDP
Annual investment flows into greenfield investments
Value of greenfield projects as a percentage of GDP
Foreign direct investment flows
Inflows/outflows: equity, reinvested earnings, other capital
Foreign direct investment position
Inward/outward stocks: equity, reinvested earnings, Equity & reinvested earnings

15. Subcommittee on Trade in Services
Monitor the progress on liberalisation of trade in services
Supervise the implementation of Additional Protocol on Trade in Services
Promote intra-regional cooperation between regulatory bodies
Propose measures for elimination of barriers in trade in services
Negotiating Group on Trade in Services
Working Group on Trade in Services Statistics
Joint RCC-CEFTA
WG on Recognition of Professional Qualifications
Negotiate the Schedule of Commitments on Trade in Services
Conclude the Additional Protocol on Trade in Services
Review the quality and coverage of available trade in services statistics
Identify priorities for further developing statistics for commonly agreed sectors within CEFTA framework
Set up a regular forum for exchange of needs between compilers of data and users
Explore potentials for conclusion of mutual recognition of qualifications
Enhance transparency of regulative framework
Establish a database on the mobility of professionals

16. Statistics related activities within CEFTA framework (2013-2015)
1. Workshops organized in cooperation and participation from international partners: WTO, UNCTAD, EUROSTAT and OECD
1st Workshop on Trade in Services Statistics in Sarajevo on 8-9 October 2013
general statistical frameworks used in recording and compiling data
principles of recording data for services identified as priorities for the region (business, professional, tourism, construction)
2nd Workshop on FATS in Brussels on December 2014
policy and analytical needs in the context of globalization, supply-chains, trade, investment, services
synergies and differences between frameworks on data collection and data compilation
interagency cooperation: statistical offices, central banks, ministries
dissemination of data, international data sources and analysis
3rd Workshop on FDI to be organized in Sarajevo, October 2015 (UNCTAD)
2. Establishment of the WG on Trade in Services Statistics
(first meeting in October 2015)

17. What are the major challenges faced by key stakeholders?
From the compilers point of view how to:
develop adequate statistical capacities to measure foreign affiliates activities in particular in services sectors
respond to the increased need for additional data ensuring quality and confidentiality of data
From users point of view how to:
overcome gaps in existing data by setting up minimum requirement of data and using appropriate estimation techniques
confidentiality of data, trust and sharing of information amongst stakeholder institutions
capacity building in the context of research and analysis for the purposes of trade and investment negotiations
Common challenge is how to:
Enhance tripartite cooperation (central banks, statistical offices and ministries)
Ensure regular exchange of services data to the CEFTA Secretariat
Identify appropriate technical assistance to address all these challenges

18. What type of reporting on BOP Trade in Services, FATS, FDI can be performed?
Example of templates/sources to use in reporting to the CEFTA Secretariat:
BPM6 data [IMF and EUROSTAT]
Trade in services data (details and partner) [UNSD and EUROSTAT]
FATS data [EUROSTAT]
FDI [UNCTAD]
Periodicity: Annually – end of September of a current year
Reporting year and timeliness:
BPM
FATS and 2012
FDI